Although there may not yet be bond bubble, shares of Apple will continue to deflate. "I deeply believe Apple is headed to $425 a share," Gundlach said. "Not because I'm a bond guy or stock guy but because I'm a market guy. I've been around for a long time and I know that when something goes vertical like Apple did from $425 once the bubble pops it goes back down to the point at which it lifted off."
Falling to $425 would mean a potential 22 percent drop in Apple shares.